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Shares of sports betting company DraftKings DKNG, +2.40% increased as much as 7.7% in Friday’s premarket trading after the company reported record revenue during its 2020 fourth quarter earnings call.
DraftKings reported revenue of $322 million, an increase of 146% compared with $131 million during the same period in 2019. DraftKings losses widened for the fourth quarter, posting a net loss of $266.4 million, compared with $29.15 million during the fourth quarter of 2019.
During the call, Jason Robins, DraftKings’ co-founder and CEO, mentioned the company benefitted from a “favorable fourth quarter sports calendar.”
This is due to complications the COVID-19 pandemic has had on the sports industry, forcing leagues like the NBA and college athletics into alternate schedules. This allowed those popular sports to go on the same time as the NFL, one of most popular sports that users bet on.
In addition, the Super Bowl took place during this reported quarter, which set records for how much was legally wagered on it in 2021.
“Things broke our way,” Robbins said multiple times on the call.
DraftKings is up 245.6% in the past year compared with the benchmark S&P 500 SPX, -0.03% index which is up 22.3% over the same period.
